1 April 2025

Dutton's PS jobs threat sparks change in Labor strategy, but only locally

| Chris Johnson
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Opposition Leader Peter Dutton used his Budget Reply speech to stress that 41,000 public service jobs would be lost in Canberra. Photo: Screenshot.

What’s another 5,000 public servants between friends?

In the federal election context, it’s everything – at least, it is for the campaign in Canberra.

Before last week’s Federal Budget, the Coalition had been making a big deal about the “extra 36,000” public servants Labor has appointed since coming to office in 2022.

Peter Dutton had repeatedly vowed to get rid of the public servants “in Canberra”.

Shadow finance minister Jane Hume has revelled in repeating that promise and even went further by insisting that she and the Opposition Leader would force public servants back into the office five days a week.

That little contribution to the pre-campaign quickly vanished after Mr Dutton, who at first came out strongly in support of ending work-from-home arrangements, was forced to rein it in when confronted with a backlash from within his own ranks.

Nevertheless, 36,000 Canberra public servants would be facing the chop under a Coalition government he leads.

That led to Labor, and in particular, Finance and Public Service Minister Katy Gallagher, to counter the threat by saying those extra public servants aren’t all in Canberra.

Public service jobs around the country – capital cities and regional centres – were at risk should the Coalition win office, she noted.

Senator Gallagher even undertook something of a national tour to highlight what jobs were at risk and where, and the threat the cuts would be to frontline services.

READ ALSO Gallagher says take Dutton at his word: 41,000 APS jobs will be cut from this town

Dutton’s commitment, Gallagher pointed out regularly, meant that for Canberra, about 13,300 jobs would go, with the rest plucked out of centres around the country.

That all changed with the Budget and Mr Dutton’s reply speech last Thursday night.

The Budget showed more than 41,000 public servants additional had been employed under Labor – 5,000 more than had been reported.

This development was music to Mr Dutton’s ears, yet his reaction to it was just as sweet for Senator Gallagher.

“We will reverse Labor’s increase of 41,000 Canberra-based public servants – saving $7 billion a year,” the Opposition Leader said.

“That’s money we can provide back to the Australian people in frontline services.

“The growth rate of public servants under this government in Canberra is about three times what it was under the Rudd-Gillard government.”

Dutton used the phrase “Canberra-based public servants” when referring to the 41,000 Australian Public Service employees he wants to sack.

He had always been referring to “public servants in Canberra”, but this speech quite specifically stated it was from Canberra where he would find 41,000 people to get rid of.

Federal Labor MPs David Smith, Andrew Leigh and Alicia Payne joined Senator Katy Gallagher to say they will fight for Canberra’s public service. Photo: Region

This sparked a change in tack for Labor, especially for the Canberra-based federal MPs.

The very next day, Senator Gallagher and all of Labor’s ACT Lower House MPs called a press conference to lambast the Opposition Leader and his threat to public servants.

But this time, it wasn’t to say that most of those extra public servants are employed outside of the capital – it was to say that Dutton wants all of them to come from Canberra.

“We have to accept him at his word. That is what he said last night,” Senator Gallagher said Friday morning.

“He was very clear last night about what he is going to do with this town.

“He said again, and his leadership team have done so as well, that they will cut 41,000 jobs.

“They say Canberra-based jobs. They say they are going to be coming from this town.

“That will decimate this city. It would rip the heart out of this city.”

It’s worth noting that that particular press conference in Woden Town Square was really just for local media because it’s a strategy that will only work in Canberra.

READ ALSO Dutton will snub Canberra and The Lodge to live on Sydney Harbour if elected PM

By Labor now saying that Peter Dutton means it when he says they are all Canberra jobs on the line, it will go a long way to shoring up votes for the government in this town.

At that level, it’s clever politicking to now say Dutton should be taken at his word.

Outside of the capital, however, should Labor’s line be embraced, there could be a sense of relief in some quarters that those jobs aren’t coming from Brisbane, or Perth, or Hobart, or Newcastle and beyond.

For Labor, it’s a double-edged sword.

For Mr Dutton’s part, he believes he’s got nothing to lose by bashing Canberra a little more.

Look at how he answered a question on Sydney radio on Monday about where he would live.

Instead of just saying Kirribilli House over The Lodge, he went a little further and basically asked who’d want to live in Canberra anyway.

Seems he has his own definition of what work-from-home means.

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Incidental Tourist7:49 am 04 Apr 25

Of course the town will be hard hit. I wish we had bipartisan approach to PS without mad hiring campaign or mass firing. Labor should have started bipartisan negotiation on PS rather than jump on Liberal’s band wagon of tug of war.

But I just wanted to highlight that ACT Government has put all eggs in one basket relying on PS tax receipts and neglecting small businesses which are backbone of mainstream Australia elsewhere. Building tram at all costs and encouraging ghost apartment blocks sucking last drops of blood from this town while people loose jobs will be lunacy.

But there is a lesson to learn to fellow Canberrans. We should realise that even ALP supporters living interstate are not opposing to massive job cuts in Canberra as they would elsewhere.. Did Canberra created that snobbish out of touch bubble which mainstream Australia dislike? Subtle support of massive job cuts in Canberra by the rest of mainstream Australia may be silent opposition to aggressive woke culture which this town is a centre of?

You act like national dislike of “Canberra” has something to do with the physical city, rather than the reality. Which is a dislike of the politicians the other areas of Australia send here.

As for the PS, the vast majority of new roles under the ALP have been created outside of Canberra and is where they will be removed if the Libs win despite the rhetoric.

Peter Graves4:49 pm 01 Apr 25

Dutton continues to maintain “cut 36,000 in Canberra” – which is knowingly wrong.
In February in The MANDARIN, Andrew Podger set out where the increases have been
“The growth of the APS is not nearly as dramatic or costly as the opposition claims, nor is it concentrated in Canberra. Table 9 in the SOSR shows that the APS headcount is lower now as a percentage of the Australian population than it was in 2008 (0.68% compared to 0.75%); also lower as a percentage of the Australian workforce (1.36% compared to 1.52%).
……………
Table 5 shows that the proportion of the APS in Canberra decreased between 2015 and 2014, from 38.1% to 36.9%.”
Table A5 is the nitty-gritty – revealing that the increases have been in the APS state and regional offices. Meaning they have been delivering services – whose ability will be cut by the obseesion that they are all in Canberra.

The wording of this, “Canberra based public servants”, makes me wonder a little whether these are job cuts as such, of another push for de-centralisation, where all the positions are relocated to towns and cities in Liberal and National held seats?
Will have the same bottom line for the local ACT and region economy, of course.

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